Mar 13 2009
Student Loan Refinance 3 Facts
When it comes to student loans there is a lot of misinformation; unfortunately,
what you don’t know can sometimes cost you. Take time to sort out fact from fiction with these student loan refinance facts and you can decide if it is a good idea for you:
- Reconsolidation Elimination. Except for a few very special circumstances, once you decide on a student loan refinance you are “stuck”. Prior to July 1st, 2006 borrowers could refinance as often as desired in order to take advantage of dropping interest rates. Today all that has changed. Now borrowers can only add additional outstanding loans to a student loan refinance and are unable to repeatedly refinance student loans so shop carefully to obtain the best possible rate the first time.
- Stay Up-to-Date. Borrowers cannot be in default when applying to refinance a student loan so keep those payments up to date. In fact, it’s a good idea to keep your credit score as healthy as possible in order to obtain the best refinance interest rate available.
- You May Need to Choose Two. If you have both private and federal student loans you may need to seek separate student loan consolidation programs. Be sure to review the requirements and benefits of each program to make sure it provides the best course of action prior to making a decision. Remember, once you make a final selection you will need to live with it for ten years or even longer. Unlike former years it is no longer easy to refinance student loans refinance on repeated basis.
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